Regis Healthcare Outlook Sours on Govt Subsidy Shortfall
Dow Jones
3 hours ago
0258 GMT - An increase in the Australian National Aged Care Classification starting price of 2.55% is well short of the cost inflation faced by Regis Healthcare and other residential aged-care providers, says UBS. Wage inflation in the health sector was 3.8% in FY 2026, the bank says. "We expect a strong negative reaction from the sector, including the potential for greenfield projects to be put on hold by Regis and others given the reduced certainty of returns," says UBS. It cuts its target price on Regis to 5.95 Australian dollars a share from A$6.75 a share but retains a neutral rating. The stock is down 27% at A$4.31.
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